Author: Complete Controller

There are two conditions of interest. One is when people pay interest while repaying debts, and the other is what people get from their savings in the bank. When one must pay interest, it is the worst possible thing. But when people are paid interest on their savings by doing absolutely nothing, it is the best thing.

This article covers the type of interest that can be incredibly beneficial for people!

Types of interests

There are two basic types of interests: compound and straightforward part. Many people clearly understand what simple interest is. The interest type used in mortgage, automobile, and other short-term loans is applied to the principal amount borrowed. A “borrower” enjoys the advantages of simple interest. The payment and the interest paid are deducted from the principal amount, reducing the amount payable when an individual is regular with payments.

The second type of interest and the focus of this article is compound interest. Compound interest boasts excellent benefits to investors and those who have savings. Unlike the simple part, compound interest applies to the principal amount plus the interest already paid or earned. It is a more complex type of interest and is not as easy to calculate as simple interest.

Understanding compound interest

The use of compound interest dates back to the 17th century and is known to have originated from Italy. It is an interest calculating method that makes an amount grow at a faster pace as compared to the simple interest.

Here is an example to help people understand what compound interest is!

For instance, a person borrows $2,000 for three years at an interest rate of 10% with a fixed payment of $500 per annum. The total amount payable will be $1,507.

In the first year, 10% interest will apply to the principal amount, which will make the amount reach $2,200. For the second year, the person will pay $500. The principal amount then reduces to $1700, and the interest amount you will have on the reduced amount. At the end of the second year, the amount payable will reduce to $1,870. Similarly, at the end of the third year, the expected amount will be $1,507. The total interest paid by the end of the three years will be $507.

Benefits of compound interest

It can work wonders for people saving for their retirement or who have kept the amount to earn profits.

Simple interest is not very beneficial for people putting away their money for retirement. But compound interest can help them reach their savings goal quicker. How? The interest rate will apply to not just the principal amount but to the sum of the principal amount and the total amount of interest received. Therefore, a person will not need to juggle the finances. Instead, they will be able to increase their savings just by keeping them in one place. It is one of the ideal ways to invest and enhance protection. The longer people keep their money in the bank, the higher the interest accrued, which looks like a perfect situation.

Get benefit from your compound interest’s knowledge!

You can use all strategies and financial ideas to have enough knowledge about using compound interest. Find the best savings account that provides you daily compound interest rather than in a month or year. In this way, you can transfer your saved money into your savings account as fast as possible.  

Pay all your credit card amount within a month to reduce the interest accumulation and compound. Also, pay off all your balance within a month whenever it seems possible for you.

The drawback of compound interest

Compound interest proves to be exceptionally beneficial for investors and savers. But in the case of repayment of loans and debts, it can be very damaging. The major drawback of this type of interest comes with an error in estimation. If an estimation error occurs in the first year, it will be carried forward to the remaining years of repayment. For example, if an individual wrongly estimates in the second year of the ten-year repayment period, the error will propagate through the next eight years. By working out the forecast smartly, people can overcome the problem of estimation errors!

About Complete Controller® – America’s Bookkeeping Experts Complete Controller is the Nation’s Leader in virtual bookkeeping, providing service to businesses and households alike. Utilizing Complete Controller’s technology, clients gain access to a cloud platform where their QuickBooks™️ file, critical financial documents, and back-office tools are hosted in an efficient SSO environment. Complete Controller’s team of certified US-based accounting professionals provide bookkeeping, record storage, performance reporting, and controller services including training, cash-flow management, budgeting and forecasting, process and controls advisement, and bill-pay. With flat-rate service plans, Complete Controller is the most cost-effective expert accounting solution for business, family-office, trusts, and households of any size or complexity.

In the US, we are still not used to hearing about them, but they sound healthy for many reasons in the rest of the world. But it has a significant impact on industries as microinsurance has solved all risks and coped up with a challenge, and this ability has doubled since 2009. More than billions of low-income Americans cannot facilitate quality insurance services. 

Microinsurance is a safety that leverages minimum wealth standard and society’s urbanization that people can connect it directly via their prepaid smartphones. 

The ‘low cost’ insurance revolution

Microinsurance is a product focused on protecting social segments with a low-income level or operating in an unstable economy and has not accessed the standard insurance market. According to the BIMA Movile report, the penetration rate of insurance in developing countries is only 2.9% due to obstacles such as lack of education, inaccessible prices for most of the population, and a scarce distribution network.

Small insurances are the most promising solution you can activate through your mobile phone. In 2014, there was a massive penetration in Africa, Asia, Latin America, and the Pacific due to the larger population percentage of 17 million policies. By using mobile insurance, we will see an increase of 263% over the past year. 

The key to this new business model is to use mobile phones as electronic purses. It is a feature that is becoming popular in a spectacular way. According to the study carried out by the GSMA association on Mobile Financial Services and experts expect to obtain 16 million customers. It is new in 2015 around the world.

Products of microinsurance

Microinsurance was born with life products. Although they have been extended to other sectors, giving rise to health microinsurance, accidents, and micro pensions, among other products.

They also have specific coverage, such as crop damage or food vouchers. You can sign a contract of it collectively to include an entire community.

Advantages of microinsurance

The emergence of microinsurance in the panorama entails a series of desirable advantages for the governments of developing countries, their population, and non-governmental organizations. Among other functions, micro-insurance:

They allow access to essential services for these communities, such as healthcare or agricultural aid programs.

• They increase productivity among insured persons since it has been proven that they are more willing to invest if they feel supported. It is, in turn, translates into economic growth, improvement of living conditions, and social inclusion.
• Also, insurers can multiply their customers exponentially without investing a large amount of money in distribution networks, benefiting from mobile services and informal networks.

And since the sums insured are small, people who make payment claims are usually fast.

Current challenges 

Microinsurance also poses a series of challenges to the insurance sector since management controls are very weak and often occur. Many countries lack a legal framework to regulate this new type of insurance. Consumer protection strategies are usually scarce, so many doubts and complications accompany their implementation.

If you want micro insurance success, you must have a delicate balance. Under specific situations, such insurance can give you a profit. Products bundled with other services let you consider group insurance schemes that are generally viable. Enhance such usage and reward client loyalty such as fertilizer, loans, smartphone minutes, etc. 

Microinsurance awareness is at a high peak in some states such as the Philippines, South Africa, and India. This way, other established countries stay meager in this regard to microinsurance. Adapting modernized methods and systems designed for typical customers to the needs of the minimum income market can be difficult. Accelerate the insurance market’s development to keep it robust to alleviate poverty and stimulate business development.  

Practitioners often cannot understand the lessons and experiences of mature marketers soon. As a result, market development is timeless; that’s why practitioners commit the same mistake. Many states cannot accommodate modern products or optional distribution platforms. 

It is pretty tricky for low-income persons to break out of the poverty cycle as they do not have a proper plan to manage risks. Sustainable development will grow essentially when low-income people have access to efficient insurance. 

About Complete Controller® – America’s Bookkeeping Experts Complete Controller is the Nation’s Leader in virtual bookkeeping, providing service to businesses and households alike. Utilizing Complete Controller’s technology, clients gain access to a cloud platform where their QuickBooks™️ file, critical financial documents, and back-office tools are hosted in an efficient SSO environment. Complete Controller’s team of certified US-based accounting professionals provide bookkeeping, record storage, performance reporting, and controller services including training, cash-flow management, budgeting and forecasting, process and controls advisement, and bill-pay. With flat-rate service plans, Complete Controller is the most cost-effective expert accounting solution for business, family-office, trusts, and households of any size or complexity.

Keeping business finances always in order is as vital as maintaining household finances daily. Only then will your company have the health to prosper even in unfavorable scenarios.

Finance in companies vs. personal finance

The first step to the financial health of your business is to separate business finances from personal ones.

The consultant, Marco Fernandes of the agency ProLucro, says that the ability to determine if a company is making profit or losses falls significantly when both finances are mixed.

“Every transaction is inportant, and every movement you execute is vital. But when your business transactions are mixed with personal transactions, it becomes more difficult to grow in the direction you are thinking, “the consultant explains.

Control of business finances where private expenses cannot be distinguished from those belonging to the business exposes the entrepreneur to risk being based on inaccurate data and, consequently, making decisions with dangerous results.

In addition to the control of personal finances, there is a legal issue in this separation. “At some point in your professional career, you will face the possibility of a fiscal audit. However, correct your accounts. Maybe, the government may, eventually, inspect your books. At that time, the idea is to find a clear and easy-to-understand record “, adds Fernandes.

If the accounting books are unclear, the employer may have to give numerous explanations, write letters, make official visits, or even pay fines.

How to control corporate finances

In addition to separating personal and business finances, other recommendations will also help you maintain the financial health of your business. “If you follow them correctly, your business will certainly be successful, and the profits will be greater,” says economist Flavio Maluf, who recommends the following:

Get organized

Observe the due dates of invoices and tickets to pay them always in the day. Do not pay interest for lack of organization. Keep your company accounts visible and in a strategic place so you do not forget where they are.

Record entries and exits

Keep a record of all movements, from the simplest to the most complex. You can do this in a book, using a spreadsheet, or with a digital system. The important thing is to keep that daily record.

Difference fixed and variable costs

Fixed costs are those accounts that you must pay every month, such as water, electricity, telephone, payroll, and taxes. The variables are those that depend on the purchase of the month, which vary in price and change or cease to exist. You must know all of them.

Share this content with your friends and followers on social networks. If you have any questions, suggestions, or advice on this subject, leave a comment, and collaborate with the exchange of ideas.

Best billing plan

If you have a client that can’t pay amounts on time and is late in invoices, you need a perfect billing strategy. If you are managing small business finances, it means you are managing cash flow. The reason is to ensure a healthy level of business operations daily. You have to be creative in terms of the bill payment process during the bill amount collection method.

Cash flow issues emerge as excessive cash binds unpaid invoices. Don’t badger with the repeated invoicing and phone calls. In this case, you should try a different way. Then, you will change the term of payment that is 20/10 Net 30. Clients get a 2% discount on the total bill if they pay the invoice within ten days. No matter, the full payment is due in 30 days.

Track your books 

If you are working with a bookkeeper, review and monitor your books daily or monthly. It will let you be more attached to the business finances. It also gives you a window into potential financial crime. Don’t ignore leisure time every month on tracking outstanding invoices. Don’t overlook bank reconciliations. Failure becomes necessary when you open up the business to wasteful expenses or even embezzlement, even with the bookkeeper’s involvement.

Make good financial habits

Review and update financial information by blocking out a decided time while establishing the protocols of internal finance. It can be a long way to protecting the condition of business finance. Keep up with your finances, as it can help you mitigate risk or fraud.

Small business owners always strive to manage time and money as they have inferior technological abilities to a larger extent. But, small business owners should implement and manage internal control.

Even though it’s a generally new industry, there are now various approaches to bring in cash with web-based social networking. Each significant online networking outlet has somehow or another helped clients transform their diversion into a business or transform their business into a more substantial business. Here are 15 basic ways individuals bring in cash with online networking.

Private ventures can profit in large manners from getting clients to “pin” photographs of their things onto their Pinterest sheets. Make a record, take part in the network by sticking to others’ photos, and transfer pictures that tempt individuals to purchase your item.

Twitter and Facebook can be incredible approaches to flaunt your language and sentence structure abilities. Demonstrate yourself to be adroit in your preferred language to get yourself recruited to compose professionally.

Are you a blogger, YouTuber, or Instagram and generate income through your activity in social networks? In the affirmative case, you should know that you do not lose tax on this income in your income statement 2019. If you wonder how to do it, continue reading; in this post, we explain in detail how to declare the income of social networks in your Income 2021.

The income of social networks in your Rent 2021 are returns of economic activity

All income must be reported to the Treasury regardless of the type of return it originates. In this case, we are dealing with that of professional activity in social networks. The income generated is that of economic activity, and as such, it must be recorded in your income tax return, economic activity section.

These returns are generally taxed under direct estimation (income minus expenses). The type of income corresponds to operating income, that is, those obtained by your usual activity; on expenses, these will be deductible for being affected by economic activity. In this sense, operating expenses are deductible, such as the materials and computer equipment purchased, the cost of the Internet, among others, or the maintenance of the website or channel.

Remember that indirect estimation is the keeping of the income and expense books among the accounting obligations that you have as a self-employed person.

What about the VAT of social network income?

Although, as you have verified, this entry focuses on the taxation in income tax of income obtained by the development of economic activity in social networks, do not forget the VAT that, generally, has to pass on the invoice issued to 21% declaring it as corresponds every three months before the Treasury through the model 303.

But as we have already anticipated, the general norm has exceptions. And is that if you use an advertising platform from another country member of the European Union and both figuring as intra-community operators in the ROI, the invoice issued will not be subject to VAT. This intra-community operation must be declared in model 349 and included in the same way in model 303.

Editors specifically have discovered achievement showcasing themselves via web-based networking media since administrations like Twitter and Facebook are incredible verifications of an idea for their aptitudes with the composed word.

Many organizations are looking for somebody to deal with their web-based social networking nearness. Unfortunately, a decent amount of those positions are temporary positions; however, there are likewise many paid open doors out there. Search “internet-based life” on worksheets to discover brings about your territory.

A lot of new humorists birthed their vocation on Twitter. One hundred forty character jokes or amusing bits of knowledge can pick up you a great deal of consideration, so in case you’re an especially sharp scholar, consider offering satire a chance to bring in cash with online life.

SoundCloud is probably the best spot to get your music seen, and I’m not simply discussing the close unthinkable objective of turning into a hero. Suppose you realize how to concoct an infectious jingle. In that case, you can present it on SoundCloud to get customers running to you to make music for their advertisements, radio promotions, and so on.

About Complete Controller® – America’s Bookkeeping Experts Complete Controller is the Nation’s Leader in virtual bookkeeping, providing service to businesses and households alike. Utilizing Complete Controller’s technology, clients gain access to a cloud platform where their QuickBooks™️ file, critical financial documents, and back-office tools are hosted in an efficient SSO environment. Complete Controller’s team of certified US-based accounting professionals provide bookkeeping, record storage, performance reporting, and controller services including training, cash-flow management, budgeting and forecasting, process and controls advisement, and bill-pay. With flat-rate service plans, Complete Controller is the most cost-effective expert accounting solution for business, family-office, trusts, and households of any size or complexity.

Money is an essential need in life. You can negotiate or bargain prices and get them reduced by a certain percentage in most cases. Price reduction occurs everywhere, whether to attract or make liquidations, but it happens. Proper money management also helps you in debt settlement. 

Debt negotiation is the process by which your debts are negotiated with your creditors. The negotiation can be carried out by yourself, or you can hire a specialized company to negotiate for you. There are financial companies that oversee negotiating with the creditors, reducing the debt, eliminating the rates for late payments, reducing the interests, etc.

Why does a creditor allow a debt reduction?

The creditors try to recover as much money as possible from their debtors. Since it is expensive for creditors to get the outstanding payments, they are usually willing to renegotiate a debt to secure at least an amount.

Also, when you can declare bankruptcy, your creditors know that they will not have the opportunity to recover their money if you do, so in most cases, they are willing to negotiate.

Which of my debts should I pay first?

Sometimes, we can worsen our financial situation, a blip, and you can’t make a deal with all our payments immediately. On other occasions, the opposite happens: we get money, expected or unexpectedly, and we want to pay part of the debts we already have.

What debts should I pay first?

To make a list of priorities in payments, we are going to base a clear concept: which debts are more damaging to me if I do not pay them. According to these criteria, we should pay the payments in this order:

1. Debts with guarantee or guarantee of payment

For example, a mortgage loan. The non-payment of the credit will finally lead to the loss of the mortgaged property. Therefore, they affect our situation decisively and are debts that can change our standard of living.

2. Debts for which I can suffer wage garnishments

The non-payment of these debts may result in us receiving part of our income, making it easy for us not to pay other payments worsening our financial situation. These debts can be, for example, alimony to children or the non-payment of some tax.

3. Debts for essential services

There are several debts whose non-payment can restrict the enjoyment of some essential services, such as food, electricity, drinking water (among services, essentials), or the pharmacy if you are chronically ill.

4. Debts without endorsement

Debts whose non-payment will not mean the loss of our assets or our income, but that can be brought to justice later by the creditors (and then can be converted into debts that cause wage garnishments or even loss of personal property). Internet bills, telephone (non-essential services), personal loans, credit, purchase cards, etc.

5. Debts with people

Debts with relatives, friends, or acquaintances usually lack a written document (they are loans between individuals with the verbal acceptance of both parties). These debts will be returned once those of the previous categories have been satisfied. People who have left us money may be angry, but that will be the maximum variation of our situation. It will not hurt to inform the lenders of our situation and record our intention to pay as soon as possible.

Debt settlement – Strategies and risks

People cannot cope with debt management issues; that is why they prefer the debt settlement program. They are those clients that are paying their debts, including sporadic ones, as they have minimum negotiation ability. As a result, they need to restrict such payments at a time. The debt settlement process also affects the credit scores, especially at initial times. Your credit score will repair with time if you start settling debt payments. 

Your credit score disturbs you when you must pay off debts that are greater than you owe. If you delay your debt settlement process, the tag of late debt payment will be on your credit score report for around seven to ten years. 

About Complete Controller® – America’s Bookkeeping Experts Complete Controller is the Nation’s Leader in virtual bookkeeping, providing service to businesses and households alike. Utilizing Complete Controller’s technology, clients gain access to a cloud platform where their QuickBooks™️ file, critical financial documents, and back-office tools are hosted in an efficient SSO environment. Complete Controller’s team of certified US-based accounting professionals provide bookkeeping, record storage, performance reporting, and controller services including training, cash-flow management, budgeting and forecasting, process and controls advisement, and bill-pay. With flat-rate service plans, Complete Controller is the most cost-effective expert accounting solution for business, family-office, trusts, and households of any size or complexity.

Investing without having one or several investment strategies is crazy. You knock and move your money based on forebodings or news without investment. It is something like that can you can lead to one place.

Failure

I will tell you about the three best investment strategies to grow your money, basically focusing on the stock market investment. Also, I will briefly discuss other strategies, some known and others not so much. If you are wondering what to do with my money, this article will be perfect for you.

The importance of investment strategies 

When you want to go somewhere, you have to have a strategy, because if you started to walk randomly, you would never reach your destination. When you have a child, you have to have a strategy to educate him. If you give him a different message every day, he will never know what to do. And, if you are going to cook a specific dish, you also have to have a strategy. Otherwise, you will end up eating something horrible.

The same happens when you want to invest your money. If you invest in the crazy without a clear investment strategy, you will surely never see your money grow. In the stock market, your worst enemy is feelings.

That fear that makes you sell when everything goes down, and you should buy, and that greed that makes you buy when everything goes up, and you should stop. And the best shield against feelings is a clear, mechanical, and straightforward strategy. This strategy does not depend on your mood or what appears in the newspapers.

How to choose a good investment strategy 

 Of course, not worth any investment strategy. Having a strategy is essential because if you don’t have it, you will surely fail when you start investing. The problem is that there are many investment strategies, and some can make you lose a lot of money. It is essential to analyze the options available and choose a strategy that fits your profile as an investor and you as a person—returning to the example of food.

Imagine it’s Sunday, and everything is closed, and you want to cook something, and someone tells you to make a paella. You start eagerly, but you realize that you don’t have rice, and you don’t have any broth either. You begin to improvise, and in the end, you get something that is neither paella nor anything else. It’s not that you don’t know how to cook paella. It’s that you didn’t have the right tools and ingredients.

• The same goes for investment.
• If you keep the first strategy you find, it probably won’t suit you.
• Imagine that you discover value investing, an investment strategy that I will talk about later.
• In short, buy undervalued companies and wait for the market to value them to sell them.
• Very pretty.
• But, without a doubt, a strategy that requires a lot of dedication and a lot of reading.
• You have to analyze the companies thoroughly, read their balance sheets and income statements, and much more.

You start eagerly, but you have never really learned to analyze companies. Also, you work from 8 to 8, and when you get home, you don’t feel like studying, and you end up buying companies that you think are good or that you have read around.

Many investment funds follow the value philosophy, and managers and their teams spend all day analyzing and studying companies, and yet many fail.

Risk Vs. Reward

You are at risk while investing money. There are many investors’ stories as they faced investment loss during the Great Recession or Depression. Despite this, you can’t eradicate the entire risk, but it can be a little bit possible when you invest wisely. Like a retirement account, the earlier investment gives you a long-term benefit. Quick-fix stock is riskier than these investments. People are doing this as they don’t know the reason for their actions.

There is no harm in such investments as you will lose little money on a bad investment. You will earn maximum money with time as you start your struggle early.

About Complete Controller® – America’s Bookkeeping Experts Complete Controller is the Nation’s Leader in virtual bookkeeping, providing service to businesses and households alike. Utilizing Complete Controller’s technology, clients gain access to a cloud platform where their QuickBooks™️ file, critical financial documents, and back-office tools are hosted in an efficient SSO environment. Complete Controller’s team of certified US-based accounting professionals provide bookkeeping, record storage, performance reporting, and controller services including training, cash-flow management, budgeting and forecasting, process and controls advisement, and bill-pay. With flat-rate service plans, Complete Controller is the most cost-effective expert accounting solution for business, family-office, trusts, and households of any size or complexity.

How to choose a variable or fixed mortgage? What elements must be assessed before hiring a fixed or variable mortgage loan? To start, you must consider your way of being and your situation. In other words, if you go extremely far, and you will use almost all your savings for the entry of the mortgage, a variable rate loan will surely fit your finances better.

You can always change the mortgage, either within the same bank or by changing entities. The first would be a mortgage ovation and the second a subrogation. The new mortgage law favors changes from variable mortgage to fixed mortgage and improves the conditions for fixed-term loans.

The process of changing the variable rate mortgage to a fixed-rate and vice versa is not complicated, and you should not be afraid to negotiate with your bank. Your starting point should be that everything with the bank is negotiable, provided you have arguments to support it. Most entities make their numbers and are clear on how far they are willing to go for a client of your characteristics. Use this link to find out if it contains you changing the interest rate on your mortgage and if so, do not be afraid to ask.

Mortgage Dictionary

In order not to get lost in the world of fixed and variable rate mortgages, there are certain terms that you should know. They are the ones that will appear in your mortgage contract or in the offers that banks propose. These are the most important mortgage terms.

What is the APR of the banks?

One of the critical questions that you should stir is the APR of the banks? The APR or Equivalent Annual Rate is the sum of the nominal interest rate plus the expenses and commissions associated with the mortgage. The APR homogenizes the interest rate of a mortgage on an annual basis and is used to compare the overall cost of a loan. The problem with variable mortgages is that this data will change as interest pays.

Also, in the mortgages, this APR serves to know what it costs to change the mortgage bank since it includes the subrogation or novation commissions.

What is the TIN of a mortgage?

According to the Bank of Spain, the TIN or Nominal Interest Rate is the effective price that the bank pays us for lending us the money. In this sense, it is the fixed percentage that you will pay for the mortgage without considering any commission. You can easily apply for TIN and get a mortgage. Only you will provide proof of loan repayment on time. You can do this by using your credit card as it is a reliable source for lenders. It will take 6 to 12 months to monitor your billing history.

What is the subrogation of a mortgage?

Mortgage subrogation is one of the formulas to modify the mortgage. Specifically, it is intended to change the loan’s creditor or debtor. In other words, to change the bank mortgage or to transfer the mortgage to another person when you sell your flat.

In a subrogation of mortgage with the change of bank, it will be enough to find an entity that offers you better conditions and reach a binding agreement. From there, your bank will have 15 days to match the offer or let you go.

What is the novation of a mortgage?

Mortgage novation is another way to change or improve the mortgage. In this case, there would be no bank change but a renegotiation with the financial institution of the mortgage loan conditions.

With a novation, you can increase the mortgage capital, modify the interest rate, and vary the repayment term, the loan holders, and even the settlement system.

What is the early repayment of a mortgage?

The early repayment of a mortgage is the early payment of part of the loan or the total thereof. In other words, advance part of the debt to shorten the term of the loan or reduce the installment. If you leave your mortgage before the end of the initial period and pay extra from the decided amount, you will have to mortgage an early repayment charge. It is equal to the remaining payment or 5% of the payment mortgage you have left to pay.

About Complete Controller® – America’s Bookkeeping Experts Complete Controller is the Nation’s Leader in virtual bookkeeping, providing service to businesses and households alike. Utilizing Complete Controller’s technology, clients gain access to a cloud platform where their QuickBooks™️ file, critical financial documents, and back-office tools are hosted in an efficient SSO environment. Complete Controller’s team of certified US-based accounting professionals provide bookkeeping, record storage, performance reporting, and controller services including training, cash-flow management, budgeting and forecasting, process and controls advisement, and bill-pay. With flat-rate service plans, Complete Controller is the most cost-effective expert accounting solution for business, family-office, trusts, and households of any size or complexity.

A mortgage is like an agreement between the lender and the buyer. This agreement gives the lender the right to seize or take your property if you do not or cannot pay the money you borrowed, plus interest. Your lenders will give you a loan that will be 80% of the home’s value.

People use these mortgage loans/mortgages to buy a home or to borrow money of the same value as a home you already own.

Features

The mortgage involves one or more real estate acquired and held as a guarantee as proof that it will face the payment of the money borrowed in advance.

We can say that the ownership of the property is in the hands of the debtor. Still, if the debtor does not satisfy the debt in the time required, the creditor can begin the legal actions necessary to obtain his money – such as requesting the public sale of the property.

Things to look for

A mortgage loan is a long-term contract by which a person, whether physical or legal, lends a certain amount of money to another person, the debtor, for the purchase of a home.

Few things to look for in a mortgage

• The loan amounts
• The closing costs of the loan, which include the lender’s fees
• The effective annual rate (APR)
• The interest rate & associated points
• The type of interest rate and if it can change (Is it fixed or adjustable?)
• The term of the loan, or the time you have to pay it

If the loan has other risk characteristics, such as early payment penalties, final global payment clause, interest-only factor, or negative amortization

Focus on finding a mortgage you can afford, even considering your other priorities, and not on the amount of money for which you can qualify.

The lenders will let you know how much a person can borrow, which is the amount they are willing to lend you. Various online calculating devices will compare debts and incomes to come up with comparable answers.

But the amount you can borrow is entirely different from the amount you can afford without expanding your budget, weakening other vital issues. The lenders do not care and don’t like to take into account all your economic, personal, and family circumstances. To find out how much one can afford, you will have to look closely at family expenses, savings, and income priorities to find out what fits your budget.

Do not forget other costs when proposing the ideal payment. 

Costs such as property taxes, homeowner’s insurance, and private mortgage insurance will usually add to your monthly mortgage payment. Don’t forget to include these costs in calculating the amount you can afford. You can get the estimates with your local tax evaluator, the insurance agent, and the lender.

Knowing how much one can easily afford every month will also help them calculate a rational price range for their new home that they are looking to buy.

Elements of a mortgage

A mortgage contract consist of three key elements:

The capital. It is the amount of money borrowed that will be returned periodically until the full payment of the debt

• The term – lenders, have to stipulate the entire debt cost. It is a monthly payment that a debtor has to pay.
• The interest rate is the cost of more than the debtor pays the creditor for having borrowed that money. It can be fixed or variable; it can be reviewed periodically and change the amount to pay.

Mortgage payments categories 

• Interest – It is an additional monthly cost that lenders add to each mortgage payment.
• Insurance – It is a kind of mortgage that provides coverage to repair any damage. It includes house repair, car repair, etc.
• Principal – It is the same money that lenders lend people as a loan. The amount of mortgage and principal’s loan amount is the same.
• Taxes – It is a mortgage that homeowners have to pay individually. You will pay taxes as per the value of your asset.

About Complete Controller® – America’s Bookkeeping Experts Complete Controller is the Nation’s Leader in virtual bookkeeping, providing service to businesses and households alike. Utilizing Complete Controller’s technology, clients gain access to a cloud platform where their QuickBooks™️ file, critical financial documents, and back-office tools are hosted in an efficient SSO environment. Complete Controller’s team of certified US-based accounting professionals provide bookkeeping, record storage, performance reporting, and controller services including training, cash-flow management, budgeting and forecasting, process and controls advisement, and bill-pay. With flat-rate service plans, Complete Controller is the most cost-effective expert accounting solution for business, family-office, trusts, and households of any size or complexity.

The rapid development of 5G networks showcases how the whole world is changing for a much-awaited transformation. Last year, the Federal Communication Commission (FCC) finalized an order to deliver a fast-track development of 5G technology across the US. The step by FCC is essential to build competitiveness and future success for the country’s small organizations.

These days, small business owners and entrepreneurs need access to technology that not only delivers them growth but amplifies their business outcomes rapidly. Moreover, with consumers having access to smartphones and broadband internet right at their fingertips, businesses have ample opportunities to connect with them. Especially those businesses who rely on online purchases; can reap full benefits from incorporating the 5G network with their business procedures.

 

Now, with 5G implementation consistently going strong in the current world of digitization, businesses have no choice but to take this innovative step. 5G network is a primary catalyst for driving their growth for the future. Let us discuss how this innovative measure is the driving force for businesses in their quest for greatness in the technological future.

Characteristics to Offer

The current roadmap of 5G networks firstly shows the most defining feature is the unprecedented speed, which far surpasses our past experiences. Since it is about 100 times faster than that of 4G networks, you can witness yourself downloading an HD quality movie in a matter of seconds, when it took minutes beforehand. So, imagine how fast business transactions are possible with speed like that offered to business owners.

Not only does 5G offers an intense boost in speed, but it reduces latency significantly as well. In other words, you will witness way fewer delays or lag in comparison with 4G networks. Moreover, with greater bandwidth and the capacity to handle multiple applications simultaneously, an increase in production is on the cards.

Furthermore, with IoT-based smart devices rapidly on the rise, we can only visualize how 5G networks can spike up the outcomes of these devices. Moreover, it also expanded the usage of these devices from a mere customer-trending innovation to delivering business operations.

In addition to that, the advent of 5G means that you can substantially magnify the number of connected devices in a network. With millions of devices promised to be a part of a single 5G network, small business owners are in for a massive gamechanger.

Thus, with fruitful benefits and ample opportunities behind the 5G implementation, small businesses can potentially become the frontrunners of the country’s economy. So, what are those benefits that small businesses seek with 5G technology in their ranks? Let us highlight them below for you!

Improved communications

With the help of faster speeds and enhanced wireless networks, small businesses can improve their engagement procedures both with clients and colleagues. Moreover, with larger bandwidth and virtually no latency, small businesses will be able to stream high-resolution audio, images, and videos between them.

5G network provides these business owners with a giant leap forward to stay ahead in the game. Moreover, it will also offer numerous opportunities to eliminate communication between both customers and fellow employees. If you can recall, one of the significant concerns with 4G networks was the lack of communication between different ranks for businesses.

Remote working

Remote working has proven to possess great benefits for any organizational infrastructure, especially during the days of COVID-19. From providing business agility and improving scheduling to substantially reducing turnover, remote working is the new improvement for businesses today.

However, with 5G networks on the rise, remote working can improve their results tenfold. In other words, with added speed and lowered latency, your remote workers will be able to communicate easily and work more efficiently. Additionally, network-related tasks such as online transactions, cloud databases, video conferences, and so much more can become relentless for these businesses.

This is an ideal scenario for small businesses since they do not have to spend a considerable amount of expenses in hiring in-house workers. Moreover, they can invest their time to build stronger networks and capitalize on their business procedures for better results.

The VR/AR transformation

The seamless connectivity provided in this new internet band could potentially help these small businesses go global. One of the major additions provided to these small businesses is the increase in the usage of AR/VR practices in their daily operations.

An upgrade of such a magnitude can not only assist these businesses in improving their production rate but also lower their overhead expenses. In other words, it will enhance remote working as mentioned previously, along with removing unnecessary travel costs.

Embracing 5G technology for a brighter future

Looking back, we started our internet journey with voice being the king of 2G to a data-centric nature of 4G. With 5G, you feel as if it is somewhat revolutionary to all the generations behind it. Moreover, with over 50% of the US audience gaining access to it in the coming four years, the change can be exciting to witness.

However, for a small business owner, the transition to 5G is a difficult step due to limited sources of income. Nonetheless, the implementation promises to provide returns that far exceed the investment for these small enterprises.

All in all, if small business owners want to see themselves reach new heights in the current business world, then incorporating 5G is the only option. However, it does not stop there! Modern businesses can only flourish if they adapt and evolve accordingly. So, the ride is only going up!

About Complete Controller® – America’s Bookkeeping Experts Complete Controller is the Nation’s Leader in virtual bookkeeping, providing service to businesses and households alike. Utilizing Complete Controller’s technology, clients gain access to a cloud platform where their QuickBooks™️ file, critical financial documents, and back-office tools are hosted in an efficient SSO environment. Complete Controller’s team of certified US-based accounting professionals provide bookkeeping, record storage, performance reporting, and controller services including training, cash-flow management, budgeting and forecasting, process and controls advisement, and bill-pay. With flat-rate service plans, Complete Controller is the most cost-effective expert accounting solution for business, family-office, trusts, and households of any size or complexity.

Food and agribusiness continue to set a measurable impact on our environmental, social, and economic dynamics. The five trillion-dollar industry has a far-reaching effect on almost every sector. The industry signifies around 40% of employment, global spending, and 30% of greenhouse emissions. Where significant improvements translated in the abundant food supply, sufficing for the food supply needs of an ever-soaring population looms as a pressing concern. The unwavering trend points towards a sharp rise in caloric and crop demands. According to the statistics, the caloric demand may increase by 70%, and a 100% rise may also be observed in animal and human feed. This increased demand will be reflected in resource constraints. It is doubtful to reach 40% of water demand with a mounting water crisis. At the same time, a decline in food and energy production is inevitable, which might lead us to resource scarcity. If left unaddressed, resource scarcity will augment the crisis and trigger political unrest in many countries. Agriculture technology is proving to be beneficial in increasing productivity and adding cultivation lands in South America, Africa, and Eastern Europe. Where technology supports the situation, reaching the increasing demands necessitates the disruption of the existing trend. 

Technological advancements in food and agribusiness acted as an opportunity for investors seeking to make the most out of their money. The global investments in food and agribusiness have been steadily rising and peaked at $100 billion in 2013. The food and agribusiness showed a better total return to the shareholders (TRS) as compared to other sectors. According to statistics, almost 100 food and agribusiness demonstrated a 17% annual increase between 2004 and 2013, in contrast to a 10 percent rise in information and technology and 13% in energy sectors. 

Growing investments in food and agribusiness confirm foreseeable prosperity. But investing in this industry requires understanding the crops, geographies, retailing, production, processing, and complex value chains. The fruition of investment is heavily dependent not only on the ample crop yields but also on how the value chains work to result in profitability (Exhibit 1) 

Rising trends in food and agribusiness

food and agribusiness encompass a variety of companies including, packaged foods, animal health and vaccines, seed and chemicals, suppliers of agricultural machinery, and data providers of precision agriculture. Even with many companies, meeting the yawning gap between demand and supply is a daunting challenge. To do so, every company involved in the food and agribusiness sector would require ample technical, financial, and human resources. At this point, investors can offer their assistance in closing this gap while seizing an opportunity for a valuable investment. 

Here we have elaborated on a few trends that will likely impact the food and agribusiness economies in the coming years.

Changing dynamics of emerging markets 

It is predicted that global GDP growth is based on increasing emerging economies. By 2020, countries outside the Organization for Economic Cooperation and Development will contribute the most to the global GDP. The dramatic increase in population and income growth of these countries is translated into their elevated demand for food. 

Changing demographics of mature markets

Today, consumers are inclined toward healthier diets and environmental sustainability. As a result of this increasingly changing trend, food production standards are stricter and higher than ever before. Demand for certified and healthier foods meeting safety and environmental standards is preferred over those that do not offer basic nutritional benefits.  

Food companies and producers who are quick to adopt this changing trend are better positioned to leverage this trend. Companies can shift to producing fortification and nutrient-rich products to market health-conscious segments. 

 Unprecedented price swings

Like with other commodities, agricultural prices experienced some swift swings in their prices in recent years. With a sharp economic downturn and surge in food prices, undernourished people increased from 850 million in 2005 to 1 billion in 2008. Moreover, the rise in food prices in 2011 and 2013 rendered similar effects but eventuated towards a decline over a few months.  

Use of Big Data 

Improved access to more sophisticated data will benefit the food and agribusiness manifolds. The latest advancement in technology allows us to utilize more granular data and employ it to enhance our analytical capability. We can optimally use our resources, increase crop yields, and reduce our costs with improved capabilities.  

Turning opportunities into profits 

Finding the opportunity is essential; making profits requires a strategic and thoughtful approach. For gaining profitability from the food and agribusiness, investors should consider the following factors:

Develop a thorough value-chain understanding

Investing in food and agribusiness demands a thorough understanding of the value chain and knowledge of the potential variations present in the sector. Investors should consider several companies that comprise food and agribusiness. Companies included in this sector encompasses primary commodity processing, input companies, and a variety of farmer businesses.

Benefit from the growing importance of emerging markets
Considering the increasing demand and supply from the emerging market, investors should recognize and benefit from the ever-increasing significance of the emerging market. 

Food and agribusiness have shown significant improvement over the past few years despite the complexities. Pursuing due diligence and adopting the right approaches can help investors gain attractive returns and efficiently contribute to reducing the growing food supply need for billions of people around the globe. 

About Complete Controller® – America’s Bookkeeping Experts Complete Controller is the Nation’s Leader in virtual bookkeeping, providing service to businesses and households alike. Utilizing Complete Controller’s technology, clients gain access to a cloud platform where their QuickBooks™️ file, critical financial documents, and back-office tools are hosted in an efficient SSO environment. Complete Controller’s team of certified US-based accounting professionals provide bookkeeping, record storage, performance reporting, and controller services including training, cash-flow management, budgeting and forecasting, process and controls advisement, and bill-pay. With flat-rate service plans, Complete Controller is the most cost-effective expert accounting solution for business, family-office, trusts, and households of any size or complexity.